Renault first-half sales volumes slip on Chinese competition
Renault Faces Challenges in European Market
PARIS, July 23 (Reuters) - Renault reported a slight drop in sales volumes for the first half of the year on Thursday, as rising competition in its key European market from new Chinese rivals curbed growth at some of its brands.
First-Half Sales Performance
The French automaker, whose sales volumes dipped 3.3% in the first quarter due to logistics issues at its low-cost Dacia brand, said it sold 1.17 million cars and vans in the first six months of the year, down 0.4% from the same period of 2025.
Brand Strategy and Electrification
"This result, driven by the complementarity of the group’s three brands, reflects improved sales quality, a strong focus on value, and accelerated electrification of the lineup," Renault said in a statement.
Focus on Value Over Volume in France
In France, its largest market, the company has cut back on lower-margin sales, such as those to short-term rental companies, to focus more on retail customers. This strategy, prioritising value over volume, aims to protect margins amid increasing pressure on pricing.
Performance Across Brands and Markets
In Europe, where the French carmaker still generates over 70% of its sales, the Renault brand posted 2.6% growth thanks to the success of the electric R5 model.
Dacia Brand and Chinese Competition
However, sales fell 8.7% at budget brand Dacia, hampered by an electric lineup limited to the China-imported Spring.
Impact of Chinese Brands and EV Demand
While Dacia’s sales improved quarter-on-quarter and its compact Sandero remains Europe's best-selling car, Renault said the growth of Chinese brands in Europe is influencing the market.
Demand for electric vehicles, the speciality of several Chinese manufacturers offering highly competitive prices, has accelerated since the conflict in Iran triggered a surge in fuel costs.
Outlook and Upcoming Results
The company will publish its full half-year figures on July 30.
(Reporting by Gilles Guillaume and Dominique Patton; Editing by Muralikumar Anantharaman and Subhranshu Sahu)
